Curran Unveils Plan To Close County Budget Hole

NASSAU COUNTY, NY — Nassau County Executive Laura Curran announced a plan to help the county close the massive hole in its budget that was caused by decreased sales tax from the economic shutdown during the coronavirus pandemic.

The announcement came with the publication of the county's Multi-Year Financial Plan Update. Because of the coronavirus shutdown, the county is facing a $385 million budget hole for 2020 and $364 for 2021.

The plan relies on the Nassau Interim Finance Authority (NIFA) to refinance $75 million in debt this year, and another $210 next year.

Earlier this year, Curran asked the New York State Legislature to increase NIFA’s bonding authority, and the legislation was approved in April. Without NIFA’s assistance, the county would need alternative gap-closing measures including less advantageous, short-term borrowing options.

Curran has called on Washington to pass the federal HEROES Act, a critical resource that would provide revenue recovery to state and local governments and could be used to help close Nassau County’s multi-year gap. Passage of some version of the HEROES Act is tenuous as best, and no aid is forthcoming from the federal government to date.

At a press conference on Tuesday, Curran said that passing the HEROES Act would be plan A, but that the county is working on plan B in case it fails.

“Our residents and businesses are facing difficult times and the county’s services that support the health and safety of residents are in high demand,” Curran said in a release. “Whatever the crisis may be, my administration will always meet the challenge of protecting our residents, but we will need a balanced budget to do so. We look to work collaboratively with the County Legislature to pursue our strategy for maintaining the funding needed for essential services as the effects of this public health crisis continue.”

In addition to NIFA refinancing, there are two key factors supporting the plan: using $112 million in budget surplus and $103 in CARES Act funding for pandemic expenses.